ONE of Zimbabwe’s leading mortgage lenders — CABS has said US$90 million worth of credit lines secured from regional banks had already boosted Zimbabwe’s economy.
The lender has secured credit lines from African Export Import Bank (Afreximbank) and the Trade and Development Bank.
CABS, the banking division of financial services firm Old Mutual Zimbabwe Limited, stated in its annual report for the period ending December 31, 2024 that it remains committed to the country’s economic development.
During the period, loans and advances rose by 14,37% to US$192,03 million, with the majority supporting the commercial and industrial sectors.
This was followed by loans extended to individuals and housing.
Consequently, income from lending activities increased to US$21,92 million, a 5,5% growth from 2023.
“CABS is committed to playing its part in the economic development of the country,” said managing director Mehluli Mpofu in a commentary to the financial statements.
“Our role as a financier has seen us provide working capital and capital expenditure loans to the productive sectors of the economy,” Mpofu added.
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“CABS was active in the agricultural and mining sectors, as well as infrastructure development, in 2024. In support of providing funding to propel growth in the country, CABS renewed its US$40 million facility with Afreximbank and increased its facility with the Trade and Development Bank to US$50 million,” the CABS MD noted.
Deposits totalled US$241,13 million as at December 31, 2024, up nearly 9% from 2023, the financial statements showed.
“The deployment of this funding into the productive sectors of the economy resulted in employment creation, an increase in the tax base, and enhanced food security for families,” Mpofu said.
He added that the society was also active in promoting trade and development through tailor-made trade facilities, enabling beneficiaries to seamlessly import raw materials and capital equipment.
During the period under review, net fee and commission income increased by 17,52% to US$45,94 million compared to 2023.
Mpofu noted that operating expenses remained stable, during the review period.
The surplus for the year dropped by 54,79% to US$31,87 million, due to a decrease in other income from US$89,31 million to US$17,46 million.
“The main contributor to the decline was the impact of the change in functional currency from local currency to USD, resulting in exchange gains and fair value losses on investment properties declining by US$49,9 million and US$18,53 million, respectively,” he explained.
Total assets reached nearly US$500 million as at December 31, 2024, driven by growth in loans and advances, cash and cash equivalents, and other assets.
“Liquidity in the market has generally been tight since the beginning of the year,” said chairman Washington Matsaira.
“While this has brought welcome stability in the exchange rate, the hope is that continued tightness in liquidity does not restrict credit growth and, in so doing, compromise economic growth.”
Matsaira said the lender would continue to focus on meeting customer needs by responding adeptly to changes in market trends while maintaining sustainable business practices.
